- More people are saying there was a gold default in the London gold market. Draw your own conclusions. See also:
Is Your Gold Really There?
Are LBMA and COMEX Defaulting on Gold?
- Adrian Douglas writes:
We are hearing of more and more cases of gold investors wanting to take physical delivery or have allocated gold. In my recent article I said:
“A couple of months ago Greenlight Capital, the large hedge fund, switched $500 million of investment in GLD to physical gold bullion. ….Apparently Germany has requested that its sovereign gold held by the NY Federal Reserve Bank be returned to Germany. Hong Kong has requested the same of the Bank of England that stores its sovereign gold. Robert Fisk, a respected journalist for the UK’s Independent newspaper, reported this week that the Arab oil producing states, Japan, Russia and China have been holding secret talks to replace the dollar as the international reserve currency and as an accounting unit for trade. He reports that the basket of currencies they propose instead of the dollar would include gold! If gold is going to regain its monetary role then you can understand why those in the know want actual physical bullion. There are some very real and significant signs that a run on the bank of the Gold Cartel for physical gold is commencing”
Talking of runs on the bank, Rob Kirby of KirbyAnalytics and GATA consultant did some brilliant sleuthing work. His sources have told him that there was panic in the London gold market around September 30th, 2009 as participants in the market wanted to take delivery of their purchased gold and refused generous cash settlements that were offered instead. Central banks had to come to the rescue to provide the gold via leasing. Apparently, even the Central Banks could not provide bars that met LGD specs which indicates a very acute shortage of physical gold is developing and that perhaps already many OTC clients have drained a large proportion of the 15,000 t of gold stock from the London OTC market. This supports what I have been discussing above. Paul Walker, CEO of GFMS, recently said that gold was going up because of some large lumpy transactions in a market with a degree of illiquidity!
If the OTC was only selling gold that the participants own there could never be a lack of liquidity. The panic that occurred at the end of September confirms there is a chronic lack of liquidity. This necessarily implies that there is multiple ownership of the same ounce of gold and it is, therefore, fraudulent. Leasing of gold from Central banks only provides temporary liquidity because they want it returned at some later date, and it looks as if the bullion bankers may have dipped into that well one too many times already!
The gold market is in a precarious position. Just like in the days of the gold standard it only required one customer not having his deposit returned to bring down the bank because a domino effect is initiated that results in all depositors asking for their deposits to be returned. If my estimates are correct that somewhere between 64,000 and 150,000 tonnes of gold have been sold against a reserve of only 15,000t. But how much of this 15,000t remains? The panic at the end of September suggests liquidity is very tight in which case only a small percentage of investors asking for their gold to be delivered or placed in an allocated account will blow up the gold market and expose the scam (a scam that has been repeated time and time again throughout history with some variations on the basic theme and has always ended in crisis and huge losses. Why should this time be any different?)
If you “think” you own gold you should take a few more steps to make sure that you do actually own gold. If you have unallocated gold in some sort of pool account that does not have a satisfactory audit or you own shares in an ETF that does not have a reliable audit then take action. Take delivery of gold or move your investment to reliable and audited allocated storage.
If you do nothing about it and when the music stops you are left with just a piece of paper that says you own gold but no one is able to give it to you then perhaps you will be able to take comfort in the fact that you dismissed the German Government, the Hong Kong Government, Greenlight Capital and many others as just a bunch of nuts who don’t know as much as you about counterparty risk in the gold market! But the “nuts” who are realizing that there are multiple ownership claims to each ounce of gold will at least have their gold if they ask for it first!
- I don’t think it will be a slow death. When confidence evaporates, the USD will dive precipitously! Yahoo Finance reports :
The weakening dollar is dying a slow death. “It’s clear where we’re headed,” says Niall Ferguson, author of The Ascent of Money. “Ten years from now there will be more than one international reserve currency,” he tells Tech Ticker.
Ferguson dismisses the dollar loyalists, citing the British pound – the last international reserve currency – as his example. “These things don’t last forever” but don’t expect it to happen overnight. “It’s a long multi-decade process,” he states. Even with the dollar near a 14-month low against the Euro, he claims it’s not without historical precedence for the greenback to lose “another 20%” this year.
For international investors the loss is enough to offset this year’s stock market gains. Not exactly great motivation for foreigners to keep buying the almighty dollar.
- Rumours are swirling that there are much shenanigans in the gold market. How confident are you that the physical gold you bought is really in the ETF vaults? Are the LBMA and COMEX defaulting on their physical deliveries? Can they fulfil all their contractual obligations to deliver physical gold? Many have doubts and the number of doubters is rising. Mineweb reports :
It doesn’t just seem to be GATA which nowadays is questioning whether the volume of gold held in ETFs and in official reserves is really there – or perhaps there is more than one title to what is actually in the world’s gold vaults? Would a run on gold bullion thus create panic among the Bankers?
Banking has run for centuries with the banks themselves only keeping on hand a fraction of the money owed to depositors with the balances loaned out and not always immediately available, if indeed it is even there at all, so when there is a run – like that on Britain’s Northern Rock last year – the bank concerned can find it tough to keep its head above water. Northern Rock, in the event, needed to be bailed out by the U.K. government.
There are plenty of theories that the gold markets also operate on a similar principle - or perhaps worse. Not only may the banks not hold the amounts of physical gold they say they do, say the doubters, having loaned much of this to third parties, but there are now analysts and observers expressing doubts over the actual title to the gold that is still seen to be in the vaults, feeling that perhaps some of it has been sold several times over. Central Banks, for example, seem to hate being questioned over gold loans preferring to duck the question and keep any such arrangements under wraps, although most will admit to gold swaps and loans being made – but little or no detail.
It may be no coincidence that the recent surge in the gold price which burst it through the $1,000 barrier followed shortly after Hong Kong demanded repatriation of its gold held in London banks and reports suggest that Germany is also looking for its foreign-held physical gold to be returned from overseas repositories. Has this created shortages of physical gold which holders are now trying to cover?
The latest commentator to express doubts is Paul Mylchreest in his Thunder Road Report. Mylchreest has calculated that, using GFMS figures, that data on the volume of gold traded on the London market (about 90% of gold traded worldwide), if put in its proper context, does not tally with his estimate of the amount of gold that is held in the form of bars which conform to “London Good Delivery” standard.
- Will the middle east be the trigger for World War 3? It is highly likely. Let us hope this war never get started. The real reason why we will not have peace in the middle east is: the Illuminati cabal who rules behind the scenes do not want peace. All the peace talks are a charade to disguise what is really happening. The Illuminati’s Satanic politician minions are merely playing a genocidal game: talk peace with their mouths but foment war behind the scenes.
- The stakes are so much higher now. Will the Satanic cabal trigger false flags attacks in America and blame it on Iran to divert attention from the ongoing economic collapse? The cabal has always used false flag terrorism to trigger wars. So, it will not be surprising. The attacks on Iran has begun, quite a few of their senior military commanders were killed recently in an apparent ‘suicide’ attack. It looks like Pakistan is going to be used as a proxy to fight against Iran and maybe to drag India and China into a World War 3.
Geo-Strategic Chessboard: War Between India and China?
….. Due to tensions with China, the Indian ruling establishment still holds onto a vision about a showdown with the Chinese. Both states are demographic dinosaurs and are competing between themselves and with the status quo Peripheral powers for resources. Despite the fact that it is the nations of the Periphery that are disproportionately exploiting a far larger share of global resources, in the eyes of many in New Delhi the perception is that it is far easier to reduce the effect of global resource competitions by working to eliminate China rather than competing with the Periphery. It is these two reasons that are the basis for the formation of Indian animosity to Beijing.
An encircling military ring that involves India has been created around China. New Delhi has been involved in the framework of military cooperation with the Periphery aimed at China. Under this framework, India has joined Japan, the U.S., and Australia in forming a de facto “Quadrilateral Coalition” to neutralize China through the establishment of a ring of containment that could see a naval blockade form in the event of a war around the borders of China.
- The dangerous and genocidal game does not end here. Russia needs to be neutralized. The Satanic cabal is losing their grip on the sheeple. As long as the sheeple have good jobs, food to eat, some sort of future… uprising and rebellion will not come about. The internet has also broken their stranglehold on MSM propaganda. The sheeple are waking up. More are realizing: the world is ruled by a hidden Satanic cabal. As I see it, more wars are coming for mass culling of the sheeple.
Dangerous Crossroads: U.S. Expands Asian NATO Against China, Russia
…. India as a nuclear power and the world’s second most populous nation, one bordering China and with historical strategic ties with Russia, is pivotal in Western designs to establish worldwide military superiority so that, in the words of an Indian analyst several years ago, the U.S. can complete its vision for dominance over every sector of the globe with this stratagem: To have closer state-to-state relations with every nation in the world than all other nations have with any other nation, even neighboring states.
The war in Afghanistan has recently provided the U.S. and NATO new basing and military transit rights in the Central Asian nations of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. “The United States has secured ‘lethal transit’ deals with Uzbekistan and Kazakhstan….Both the Kyrgyz Ministry of Defense and the US Embassy in Bishkek confirmed earlier that the Manas Transit Center is facilitating the shipment of military freight going to Afghanistan….[T]he transit of supplies into Afghanistan via Turkmenistan ‘is possible’….” 
Of the three nations in the South Caucasus, Georgia and Azerbaijan are veritable Pentagon and NATO military outposts on Russia’s borders and Armenia just announced it might send troops to Afghanistan to serve under NATO command.
“The arc of encirclement of Russia gets strengthened. NATO ties facilitate the deployment of the US missile defence system in Georgia. The US aims to have a chain of countries tied to ‘partnerships’ with NATO brought into its missile defence system – stretching from its allies in the Baltic to those in Central Europe. The ultimate objective of this is to neutralise the strategic capability of Russia and China and to establish its nuclear superiority. The National Defense Strategy document, issued by the Pentagon on July 31, 2008, portrays Washington’s perception of a resurgent Russia and a rising China as potential adversaries.” 
In February 2008 a Reuters report said that, “The United States is worried that Russia, China and OPEC oil-producing countries could use their growing financial clout to advance political goals, the top U.S. spy chief told Congress….”
- The next few weeks could determine whether the world is diving headlong into World War 3. Let us all hope it will not happen.
- Is this in preparation for the attack on Iran? It will not be a surprise. This is the largest air defence exercise ever conducted between the 2 countries. As many as 17 US warships are already deployed. This exercise is to test how well the air defence system is, in the event of a missile attack on Israel. The period of this exercise is 21 Oct to 5 Nov 2009. All countries in the middle east are on maximum alert, should this exercise become a live attack on Iran.
Israel, US to hold joint air defence exercise
Israel and the United States are to hold a joint, 16-day air defence exercise, described as the largest drill ever by the two countries in Israel, Tel Aviv announced Tuesday. The Juniper Cobra 10 drill, starting Wednesday, aims to test how well the Israeli and US defence systems work together in the event of a missile attack against the Middle Eastern country.
“Small numbers” of US forces normally stationed in Europe will will be temporarily deployed at a number of locations in Israel during the drill, the Israeli military said in an announcement. Israelis may observe troop movements and a number of roads will be closed for short periods of time, it warned. In total, some 1,000 US Army personnel and a similar number of IDF soldiers are to take part.
Officials in Syria, Iran and Lebanon’s radical Shiite Hezbollah movement have been monitoring preparations for the air defence drill with concern, but Israel has made a point of issuing calming messages, saying it had no intention of exploiting the exercise to carry out offensive action. The drill is the fifth in a series of biennial Juniper Cobra exercises, took 18 months to plan and is “part of a routine training cycle designed to improve the interoperability of both air defence systems,” said the Israeli military statement.
“This exercise is not in response to any world events,” it stressed in a clear reference to world speculation as to whether Israel is planning a military strike against Iran. Iran and Syria are said to also be keenly awaiting the results of the exercise. According to Israeli media, they have been making a concerted intelligence effort to uncover Israel’s weak spots in its defence against missiles.
The drill is to simulate long-range missile fire at Israel from Iran, Syria and Lebanon. Towards the end, American systems are expected to carry out a “live interception” of missiles.
- See also :
US and Israel stage major air defense exercise
U.S., Israel: Juniper Cobra 2009